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Home equity loan

Home equity loan

  • Loan repayment schedule of up to 30 years
  • Free of charge consultations with the private advisor
  • Professional support during the loan repayment

If you have needs or plans, but you do not have sufficient means, apply for a consultation with SEB bank specialist to agree on financing solution that is the most suitable for you.

You may apply for a loan or consultation in any branch of SEB bank.

Borrow deliberately, assessing your capacity to repay the loan.

Minimum Amount of the Loan

Starting with 3 500 EUR

If you need a smaller amount of financing, we recommend you to familiarise yourself with terms and conditions of the consumer loan.

Term for Repayment of the Loan

Up to 30 Years

The period of the loan is determined individually, by evaluating each case separately.

Monthly Instalment of the Loan

May not Exceed 40% of Your Net Income together with your other loan and leasing payments

On the date specified by you, loan repayment takes place automatically from your current account in SEB bank.

Preconditions for the Receipt of a Loan

Stable, Regular and Sufficient Income for the Performance of Loan Liabilities

Bank evaluates your declared income: salary, income from the economic activity, rent, etc.

Positive Borrowing History

Prior to granting the loan, your previous financial liabilities will be evaluated. Positive borrowing history consists from prompt performance of liabilities.

Collateral on the Loan

Bank evaluates the condition and market value of the property.

Loan Repayment Early repayment of the loan is possible without additional fee.

Nine Steps for Receipt of the Loan

1. Consultation


Apply for a free financial consultation about the loan.
During the consultation, we will discuss your needs in order to offer the most appropriate financial solution. Remember to bring your passport or ID card, when you come for a consultation.

2. Property evaluation


You should obtain a valuation of the property from a certified valuer.
You can also apply for a valuation by a certified property valuer at the branch of the SEB bank.

3. Loan application


Fill in the loan application in the internet bank or at the branch.
In addition, you will have to submit:

  • Property evaluation;
  • The printout of the bank account for the past 6 months (if your income is not transferred to the account with the SEB bank) and other documents supporting your income;
  • Other documents, if required, for evaluation of the specific transaction.

Upon your arrival at the branch, you and your guarantor will have to present passports or ID cards.

The information you provide must be accurate and complete in order for us to be able to evaluate your ability to repay the loan and so that we could make a decision on granting of the loan.

4. Bank's offer


Evaluate terms and conditions of the loan offered to you according to the goal and collateral specified in your application.

5. Loan agreement


Before signing of the agreement, the terms thereof are discussed with SEB bank specialist.
Sign the loan and pledge agreement with SEB bank.
In order to reduce risks linked to loan repayment, use loan payment insurance.

6. Signing of the request for corroboration at the notary


Sign the necessary documents at the notary who certifies documents to be submitted to the Land Register.

7. Registration of the mortgage in the Land Register


Submit your documents to the Land Register.

8. Insurance of the property


Take out an insurance policy for the pledged property in SEB bank.
You will be required to renew the insurance policy regularly as it needs to be valid throughout the loan repayment term. AS “SEB banka” shall be indicated therein as the recipient of the indemnity.

9. Loan disbursement


Wait for the message from your transaction manager regarding loan disbursement.
After the terms and conditions have been fulfilled, the bank shall disburse the amount specified in the loan agreement according to the terms and conditions of the agreement.

Additional Information

Terms and conditions of the loan may differ for each transaction.

Amount of the loan, repayment term and other terms and conditions are evaluated according to the purpose of the loan, value of the collateral, and paying capacity of the customer.

 

The Amount of the Monthly Instalment

 

The sum of the monthly instalments depends on several factors:

  • The amount of the interest rate and fluctuations thereof - the lower the interest rate, the lower the monthly instalment;
  • Period of the loan — the longer the term, the lower the monthly instalment.

Schedules of loan repayment

Schedules of loan repayment

Annuity payments: during the validity term of the loan agreement payments of the principal sum and interest are separated into as equal payments as possible. Amount of the monthly instalment will be constant in the respective period of the interest rate change.

Linear payments: payment of the principal sum remains constant during the validity term of the loan, but interest is calculated from the unpaid part of the loan.

The Interest Rate of the Loan

 

Variable interest rate will be applied to your loan, consisting of:

  1. Base interest rate - variable part of the interest rate. You will be able to choose either  a short-term or a long-term interest rate.
    • Short-term interest rate is determined for 3, 6, 12 months.  It is usually lower than a fixed rate, but it fluctuates depending on the market situation (every 3, 6 or 12 months respectively). It will be more difficult for you to plan your expenses, but in the case of a favourable market situation you might be the winner.
    • Long-term interest rate is determined for a period of 2 to 5 years; usually it is higher than the variable rate, but remains constant for a longer period of time. Thus you can reduce your risk, because the interest rate cannot change frequently.

    Information on inter-bank rates (money value in the market)!
     

  2. Margin rate - fixed part of the interest rate, and main criteria for the determination of the amount of the interest rate are:
    • Stability of income and the capacity to prove it;
    • Previous cooperation with SEB bank, performance of liabilities;
    • Total amount of liabilities;
    • Collateral on the loan — market value of the property.

Related Costs

One-off costs

Bank-related expenses:

  • Commission fee for the processing of the loan (documents) in accordance with the SEB bank price list of.

Non-Bank-related expenses:

  • Real estate evaluation;
  • Notarial services (drawing up requests for corroboration in order to change the ownership rights and registration of mortgage, etc.);
  • State fees and stamp duties for registration of the mortgage in the Land Register.

Repeated costs

  • Real estate insurance;
  • Loan payment insurance (if the service is used).

 

Loan payment insurance

In order to avoid unplanned financial losses and protect the relatives from taking over of loan liabilities in situations when unexpected difficulties with loan repayment arise, we offer loan payment insurance.

The monthly insurance payment, starting from 5 EUR, provides an opportunity to receive insurance indemnity in situations involving your involuntary unemployment or temporary disability, as well as allows you to save your property because the insurer will cover the loan balance in the event of your permanent disability or death.

Property insurance

For your convenience we offer to insure your property at SEB bank. To find out more about the insurance options and special offers, call +371 26668777.

Insuring your home results in you gaining security as well as an opportunity to avoid unexpected financial losses that might arise from theft, fire, a water-supply system accident or other accidents.

Please, make sure that the prepared property insurance policy meets the following criteria:

  • The sum insured of the real estate and equipment equals the restoration value or the actual value thereof, if the object is being depreciated;
  • Real estate has been insured, including the bearing structures and finishing;
  • Risks insured: fire, natural disasters, failures of engineering technical communications, theft and robbery, or coverage of all construction risks, if construction or reconstruction works take place in the object;
  • AS SEB bank, reg.No. 40003151743, is specified as recipient of Indemnity, receiving the insurance indemnity to the amount of outstanding loan liabilities upon ocurrence of insurance event;
  • A deductible has been set at your choice; however, it may not exceed 10% of the sum insured of the pledged property.

Please send the renewed insurance policy to e-mail address apdrosinasana@seb.lv or deliver it to any SEB bank branch by the expiry date of the current insurance policy.

You can see terms and conditions of real estate insurance policies concluded with AAS Balta.

 

You may apply for a loan or consultation in any SEB bank branch or by calling +371 26668777, or by using Skype: SEB_Latvija.

A consultation with a private advisor of SEB bank may prove useful to you in order to find out the amount of the loan that you could receive, to discuss the most appropriate types of payment, as well as to receive answers to your questions in relation to the loan.

Services Fees
Revision of the application Free of charge
Processing of the loan, increasing (% of the granted amount)1 1,5%, min 75.00 EUR
Repayment of the loan before maturity Free of charge
Other changes on the customer's initiative (% of the loan balance)1 0,7%, min 70.00 EUR
max 300.00 EUR
Changing of the loan repayment account1 15.00 EUR
Preparation, drawing up or approval of documents if the loan is refinanced to another credit institution 700.00 EUR
Preparation, drawing up or approval of documents if the pledged immovable property is being sold and if the transaction is financed by another credit institution 700.00 EUR
Uninsured collateral fee2 10.00 EUR per month

Additional services

Valuation of collateral By agreement
Preparation, processing and approval of bank's consent upon the customer’s request 20.00 EUR

 


 

1 The commission fee must be paid on the day the agreement or amendments are signed.

2 The fee is charged if the collateral is not insured for more than 30 days.

Additional information

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